South Korea's Financial Services Commission (FSC) is under scrutiny after it was revealed that the initial draft of the Digital Asset Basic Act omitted proposed limits on cryptocurrency exchange shareholders. This omission has sparked debate over the transparency of the country's regulatory framework for digital assets. The Maeil Business Newspaper reported that the FSC's commissioned study from Seoul National University did not include provisions for limiting major shareholder stakes, raising questions about the legislative process. The controversy centers on the sudden appearance of the shareholder limit proposal in the bill without clear documentation of its origins. This has led to speculation about potential disagreements within the presidential office and possible external pressures influencing the bill's development. The FSC has yet to clarify the timeline and rationale behind the inclusion of the shareholder limits, which aim to prevent market manipulation but face criticism for potentially stifling innovation and investment. South Korea's evolving cryptocurrency regulations, including the Digital Asset Basic Act, are part of broader efforts to establish a comprehensive framework for digital assets. The proposed shareholder limits could significantly impact major exchanges like Upbit and Bithumb, potentially leading to restructuring and affecting foreign investment due to regulatory uncertainty.